How to Maximise Your Rental Income
If you want to maximize your income and get the highest possible return on your investment property, then you’ll need to adopt tried and tested strategies for success.
In this article, we’ve gathered nine methods that you can use for your current rental properties, from boosting your home appeal to offering tax incentives.
- Set Competitive Rental Rates
Figuring out the right rental price for your property and its location is a balancing act. Setting your rental rates too high will likely scare away potential tenants. If you set them too low, you could lose valuable income.
Striking the perfect balance is much easier with a rental income calculator. This tool will help you make a decision based on local market trends and competitor pricing.
You can also research similar properties in your area to see what they are charging and adjust your rates to match them. Setting competitive pricing across your property investment portfolio means quicker leasing and reduces the chances of vacancy periods.
- Boost Appeal with Renovations
Sprucing up your properties will provide you with a better return on your initial investment. Little things, like a fresh coat of paint or more modern fixtures and fittings, can improve the overall appeal of your property without breaking the bank.
If you have the budget, you could even go ahead with more extensive renovations, such as a kitchen or bathroom refurb. Depending on the rent potential in the area, this could increase the amount you can charge.
- Offer Incentives for Long-term Leases
Offering your current tenants a long-term lease can be a win-win situation. You could choose to provide incentives, like a discount on rent or including utilities within the rental price for those who choose to sign long-term contracts.
Having long-term tenants means you’ll enjoy a stable income and trusted occupants who will look after your property.
- Furnish Your Properties
If your property is in an area where short-term rental demand is high, you could furnish it to attract a bigger audience. Well-furnished apartments will attract higher rental rates and appeal to those looking to move in quickly.
When you furnish, think about creating a space where tenants can see themselves living. It needs to be inviting and practical, with comfortable beds and sofas. You will need to invest initially, but the increase in rental income will outweigh the costs.
- Consider Allowing Pets
There are animals in 69 percent of Australian homes. Pet owners who rent often find it hard to find pet-friendly housing. Choosing to allow pets in your properties will help you tap into a much larger tenant pool and give you the opportunity to charge a pet deposit.
Letting a property to pet owners does come with its risks, so make sure you set out a pet policy to avoid any future misunderstandings.
- Keep Your Properties Well-Maintained
Keeping on top of maintenance in your rental properties is crucial to keeping your tenants satisfied and maximizing your rental income. You should regularly conduct routine inspections so you can address any issues before they negatively impact your tenant.
Tenants are far more likely to renew their leases if they feel comfortable and at home in your property. Simple acts like quick repairs and clean appliances will provide a much more welcoming atmosphere.
Taking the time to invest in preventative maintenance can save you from having to do costly repairs later down the line.
- Take Advantage of Tax Incentives
Navigating property investment can come with different tax implications for both you and your tenant. Understanding your obligations will help you save on costs. Try familiarizing yourself with the many tax incentives available to property owners.
You can deduct expenses like tenant advertising, utilities, upkeep and repairs, and interest on your mortgage. Consider chatting to a tax professional who will help you reduce your overall expenses and increase your net rental income.
- Hire a Professional Property Manager
Managing your rental properties yourself can be time-consuming – especially if you own multiple units. Hiring a professional property manager like One Hive will take essential tasks off your plate so that you can focus on your broader investment strategy.
Property management companies will handle all tenant relations, maintenance requests and marketing on your behalf, so your properties are always occupied. While you will need to pay for this privilege, reducing your vacancy periods will outweigh your initial investment.
- Reduce Your Vacancy Periods
Having a vacant property will eat away at your rental income. To avoid this, it’s essential to implement strategies for minimizing tenant gaps.
Start by marketing your property well in advance – either as soon as it becomes available or the tenant has put in their notice. Try posting your property on online platforms and advertising on social media to reach as many potential tenants as possible.
Potential property platforms to market your rental unit on include:
If you’re not getting any bites, consider offering incentives like early leases or more flexible move-in dates. The overall goal you should always aim for is to keep your properties occupied and generate a consistent rental income.
Final Thoughts
Maximizing your rental income requires you to take a proactive approach. You should embrace the above strategies to improve your property’s appeal and overall value. Understanding the rental market and diligently maintaining your property will allow you to reap the rewards of property investment without unnecessary stress.
Ready to take the next step in your property journey? At One Hive Property Group, we’re here to help you get the most out of your rental property and boost your income. Reach out to us at 0439 451 915 or info@ohpg.com.au to learn more about how we can help you succeed as a landlord.